SteelMint’s daily sponge iron, CDRI, index was assessed at INR 30,500/tonne (t) (- INR 500) exw-Rourkela on 15 November, 2022.
About 2,250 t of transactions were recorded today as against 300 t on 14 November.
The index fell on lower bids, and while trades improved slightly, they remained below average leading offers to soften further. Market participants seemed to lack trust in the direction of price changes. As a result, spot trading remained weak. Despite the ongoing price reduction, buyers are still acquiring material as per bare necessity.
About 1,200 t of sponge PDRI (FeM 77-78%) trades were recorded today from Odisha. Deals were concluded on DAP Raipur basis.
Trade dynamics
- Premium grade sponge iron (FeM 81-82%) was sold to Jalna-based buyers at INR 32,000/t exw Rourkela.
Rationale –
This index has been derived based on transactions, offers, bids and indicative price data sets. Transactions are considered as T1 and given a weightage of 50% whereas other data sets are considered as T2 and given a weightage of the balance 50%.
- Transactions (T1) – Five trades in the range of INR 30,400-30,700/t was recorded during the 11:30 am to 5:30 pm SteelMint trading window and considered for final price calculation as T1 inputs. The average of these transactions was INR 30,422/t which is given a 50% weightage in the final price calculation.
- Other Price Indicators – bids/offers/indicative (T2) – Twenty offers reported in the trading window and considered as T2 inputs. The average price of these twenty was INR 30,546/t and given a 50% weightage in the final price calculation.
The final price for sponge CDRI exw Rourkela was at INR 30,484/t, rounded to INR 30,500/t exw.
Click for detailed methodology
T1 – Trade, T2 – Offer/Bid/Indicative, *Normalized price as per methodology
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